Harold Timmons Is in a Position to Close a Large

question 38

Multiple Choice

Harold Timmons is in a position to close a large sale if he conceals certain information that the customer needs to make an intelligent buying decision. Harold's sales manager encourages him to withhold the information and says,"You will not be breaking any law."Which of the following statements would most likely help Harold in this situation?

• A)A salesperson's ethical sense must extend beyond the legal definition of right and wrong.
• B)Cooling-off laws prevent customers from being harmed by unethical salespeople.
• C)The code of ethics established by management justifies all ethical and unethical choices.
• D)The firm's moral tone is established by salespeople who have daily customer contact.
• E)An action is ethical if a salesperson can defend it successfully to a group of peers.

---

Definitions:

Post-Closing Trial Balance

A list of all accounts and their balances after the closing entries have been made, ensuring that debits equal credits in preparation for the next accounting period.

Temporary Accounts

Accounts that are closed at the end of the accounting year, including income, expense, and withdrawal accounts, to prepare the company for the new fiscal year.

Permanent Accounts

Accounts that carry their ending balances over into the next accounting period, typically including assets, liabilities, and equity accounts.

Current Ratio

This financial indicator quantifies a corporation's ability to satisfy its short-term liabilities with its current assets, based on a comparison calculated by dividing the former by the latter.